The reason XviD and DivX are so rarely supported by these major manufacturers in their multimedia devices (PSP, X-Box 360 and PS3 included) has less to do with paying codec fees and more to do with not wanting to piss off media allies. With XviD/DivX being the preferred method for encoding ripped television shows and DVDs these days, supporting them in their products would be seen by some in the industry as support for piracy. That the PSP could play movies at all earned Sony, who themselves have a major motion picture arm, considerable scorn from their peers in the motion picture industry.
Let the hive mind of Engadget get that for you.
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